Auditor Report of Asian Flora Ltd.

Mar 31, 2011

1. We have audited the attached Balance Sheet of "M/s Asian Flora Limited". As at 31st March, 2011 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit included examining, on a test basis, evidence supporting the amounts and disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the companies (Auditor's Report) Order 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the order.

4. Further to our comments in Annexure referred to above, we report that:

a. We have obtained only the available information and explanations to the extent furnished and as is made available to us. In view of the closure of the unit since long and non availability of staff; the availability of information and explanation have got effected to a certain extent and subject to these limitations we could elicit the information to the best of our knowledge and K belief which were necessary for the purpose of our audit

b. In our opinion, proper books of accounts as required by Law "Prima-facie" appear to have been kept; by the company; so far as appears from our examination of those books. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

c. In our opinion proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books.

d. The Balance Sheet and the Profit & Loss account dealt with by the report are in agreement with the books of account.

e. On the basis of written representation received from the Directors and taken on record by the Board of Directors, we report that none of the Director is disqualified as on March 31st, 2010 from being appointed as a Director under clause (g) of sub-section (1) of section 274 of the companies Act, 1956.

f. The company is not having manufacturing activity since 2001. Hence this matter shows the impact / effect on the "Going Concern Concept".

g. In view of examination of books of accounts the company has not provided the interest on secured loans. And thus not followed the "accrual concept*".

h. The loan outstanding to KSIIDC, Bangalore, NHB, Bangalore are secured against the assets of the company and the same are under the possession of the KSIIDC, Bangalore.

ANNEXURE TO AUDITORS' REPORT

1. According to the information and explanation given to us the assets of the company are under the possession of the KSIIDC, Bangalore. Since the assets are secured against the Loans with KSIIDC.

2,As explained to us, there are no stocks of Goods, stores, spare parts and materials as physically verified and certified by the management.

3. a. The Company has not taken any loans, secured or unsecured, from companies, firms, or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, or from Company under the same management within the meaning of Section 370 (IB) of the Companies Act, 1956, where the rate of interest and other terms and conditions are, in our opinion, prima facie prejudicial to the interests of the Company except that on amount of Rs. 214.83 lacs has been taken as unsecured loans from companies in which Directors are interested and from others.

b. The company has not granted any loans, secured or unsecured, to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956, or to company under the same management within the meaning of Section 370 (IB) of the Companies Act, 1956, where the rate of interest and other terms and conditions are, in our opinion, prima facie prejudicial to the interests of the Company.

c. The company has not granted any advances in the nature of loans.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regards to purchases of stores, raw materials including components, plant and machinery, equipment and other assets and with regard to sale of goods.

5. The Company need not to be entered into a register in pursuance of Section 301 of the Act. Since no transaction exceeding the value of Rs. 5, 00,000/- (Rupees five lakhs only) as such it is not applicable.

6. According to the information and explanations given to us, the Company has not accepted any deposits as define under Section 58 A of the Companies Act, 1956 and the rules framed there under during the period under review.

7. The company is having a paid-up capital exceeding Rs. 50 lacs as at the commencement of the financial year concerned and has no Internal Audit System commensurate with its size and nature of business.

8. According to the information explanation given to us maintenance of cost records has not been prescribed by the Central Government under section 209 (1) of the Companies Act, 1956, for any of activities of the Company.

9. a. According to the information and explanations given to us Provisions of the Provident Fund Act and Employees State Insurance Act are not applicable to the company.

b. According to the information and explanations given to us, and the records of the company examined by us there are no undisputed amounts payable in respect of Wealth-Tax, sales tax, customs duty and excise duty which have remained outstanding, as at 31st March, 2011, for a period of more than six months from the date they became payable except the amounts of TDS of Rs. 25,100/- and Income Tax of Rs. 6,37,598/-.

10. The company has been registered for a period of not less than 5 years and its accumulated losses at the end of the financial year is more than 50% of the net worth.

The company is a Sick Industrial Company within the meaning of clause (o) of sub- section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and the same has not been reported to the BOARD FOR INDUSTRIAL RECONSTRUCTION by the Directors of the Company.

11. The company has defaulted in repayment of dues to a financial institution or bank as such it is not applicable.

12. The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities during the financial year hence this point is not applicable.

13. According to the information and explanations given to us, and records of the company examined by us, the company has not given any guarantee for loans taken by others from bank and other financial institutions hence this point is not applicable.

14. According to the information and explanations given to us, and records of the company examined by us the loans were applied for the purpose for which the loans were obtained.

15. According to the information and explanations obtained and records examined by us. The company has not raised any short term fund during the financial year. Accordingly there is no question of long term investments it is not applicable.

16. As per the information and explanations obtained and records examined by us. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act hence this point is not applicable.

17. As per the information and explanations obtained and records examined by us. The company has not issued any debentures during the financial year it is not applicable.

18. As per the information and explanations obtained and records examined by us. Since the company has not offered any public issue. Accordingly the Management has not provided any disclosure on end use of money hence this point is not applicable.

19. As per the information and explanations obtained and records examined by us. No fraud has been committed during the financial year it is not applicable.

V. RAMACHANDRA RAO CHARTERED ACCOUNTANT DATE: 10.08.2011 PLACE: Hyderabad

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Mar 31, 2010

1. We have audited the attached Balance Sheet of "M/s Asian Flora Limited". As at 31st March, 2010 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit included examining, on a test basis, evidence supporting the amounts and disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the companies (Auditor's Report) Order 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the order.

4. Further to our comments in Annexure referred to above, we report that:

a. We have obtained only the available information and explanations to the extent furnished and as is made available to us. In view of the closure of the unit since long and non availability of staff; the availability of information and explanation have got effected to a certain extent and subject to these limitations we could elicit the information to the best of our knowledge and belief which were necessary for the purpose of our audit.

b. In our opinion, proper books of accounts as required by Law "Prima-facie" appear to have been kept; by the company; so far as appears from our examination of those books. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

c. In our opinion proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books.

d. The Balance Sheet and the Profit & Loss account dealt with by the report are in agreement with the books of account.

e. On the basis of written representation received from the Directors and taken on record by the Board of Directors, we report that none of the Director is disqualified as on March 31st, 2010 from being appointed as a Director under clause (g) of sub-section (1) of section 274 of the companies Act, 1956.

f. The company is not having manufacturing activity since 2001. Hence this matter shows the impact / effect on the "Going Concern Concept".

g. In view of examination of books of accounts the company has not provided the interest on secured loans. And thus not followed the "accrual concepts".

h. The loan outstanding to KSIIDC, Bangalore, NHB, Bangalore are secured against the assets of the company and the same are under the possession of the KSIIDC, Bangalore.

ANNEXURE TO AUDITORS' REPORT

1. According to the information and explanation given to us the assets of the company are under the possession of the KSIIDC, Bangalore. Since the assets are secured against the Loans with KSIIDC.

2. As explained to us, there are no stocks of Goods, stores, spare parts and materials as physically verified and certified by the management.

3. a. The Company has not taken any loans, secured or unsecured, from companies, firms, or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, or from Company under the same management within the meaning of Section 370 (IB) of the Companies Act, 1956, where the rate of interest and other terms and conditions are, in our opinion, prima facie prejudicial to the interests of the Company except that on amount of Rs. 214.83 lacs has been taken as unsecured loans from companies in which Directors are interested and from others.

b. The company has not granted any loans, secured or unsecured, to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956, or to company under the same management within the meaning of Section 370 (1B) of the Companies Act, 1956, where the rate of interest and other terms and conditions are, in our opinion, prima facie prejudicial to the interests of the Company.

c. The company has not granted any advances in the nature of loans.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regards to purchases of stores, raw materials including components, plant and machinery, equipment and other assets and with regard to sale of goods.

5. The Company need not to be entered into a register in pursuance of Section 301 of the Act. Since no transaction exceeding the value of Rs. 5, 00,000/- (Rupees five lakhs only) as such it is not applicable.

6. According to the information and explanations given to us, the Company has not accepted any deposits as define under Section 58 A of the Companies Act, 1956 and the rules framed there under during the period under review.

7. The company is having a paid-up capital exceeding Rs. 50 lacs as at the commencement of the financial year concerned and has no Internal Audit System commensurate with its size and nature of business.

8. According to the information explanation given to us maintenance of cost records has not been prescribed by the Central Government under section 209 (1) of the Companies Act, 1956, for any of activities of the Company.

9. a. According to the information and explanations given to us Provisions of the Provident Fund Act and Employees State Insurance Act are not applicable to the company.

b. According to the information and explanations given to us, and the records of the company examined by us there are no undisputed amounts payable in respect of Wealth-Tax, sales tax, customs duty and excise duty which have remained outstanding, as at 31st March, 2010, for a period of more than six months from the date they became payable except the amounts of TDS of Rs. 25,100/- and Income Tax of Rs. 6,37,598/-.

10. The company has been registered for a period of not less than 5 years and its accumulated losses at the end of the financial year is more than 50% of the net worth.

The company is a Sick Industrial Company within the meaning of clause (o) of sub- section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and the same has not been reported to the BOARD FOR INDUSTRIAL RECONSTRUCTION by the Directors of the Company.

11. The company has defaulted in repayment of dues to a financial institution or bank as such it is not applicable.

12. The company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities during the financial year hence this point is not applicable.

13. According to the information and explanations given to us, and records of the company examined by us, the company has not given any guarantee for loans taken by others from bank and other financial institutions hence this point is not applicable.

14. According to the information and explanations given to us, and records of the company examined by us the loans were applied for the purpose for which the loans were obtained.

15. According to the information and explanations obtained and records examined by us. The company has not raised any short term fund during the financial year. Accordingly there is no question of long term investments it is not applicable.

16. As per the information and explanations obtained and records examined by us. The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act hence this point is not applicable.

17. As per the information and explanations obtained and records examined by us. The company has not issued any debentures during the financial year it is not applicable.

18. As per the information and explanations obtained and records examined by us. Since the company has not offered any public issue. Accordingly the Management has not provided any disclosure on end use of money hence this point is not applicable.

19. As per the information and explanations obtained and records examined by us. No fraud has been committed during the financial year it is not applicable.



V.RAMACHANDRA RAO CHARTERED ACCOUNTANT

Date : 31.08.2010 Place : Hyderabad

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Mar 31, 2009

1. We have audited the attached Balance Sheet of M/s Asian Flora Limited". As at 31st March, 2009 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit included examining, on a test basis, evidence supporting the amounts and disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the companies (Auditor's Report) Order 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act. 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the order,

4. Further to our comments in Annexure referred to above, we report sthat:

a. We have obtained only the available information and explanations to the extent furnished and as is made available to us. In view of the closure of the unit since long and non availability of staff; the availability of information and explanation have got effected to a certain extent and subject to these limitations we could elicit the information to the best of our knowledge and which were necessary for the purpose of our audit.

b. In our opinion, proper books of accounts as required by Law "Prima-facie" appear to have been kept; by the company; so far as appears from our examination of those books. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

c. In our opinion proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books.

d. The Balance Sheet and the Profit & Loss account dealt with by the report are in agreement with the books of account.

e. On the basis of written representation received from the Directors and taken on record by the Board of Directors, we report that none of the Director is disqualified as on March 31st, 2009 from being appointed as a Director under clause (g) of sub-section (1) of section 274 of the companies Act, 1956.

f. The company is not having manufacturing activity since 2001. Hence this matter shows the impact / effect on the "Going Concern Concept".

g. In view of examination of books of accounts the company has not provided the interest on secured loans. And thus not followed the "accrual concepts".

h. The loan outstanding to KSIIDC, Bangalore, NHB, Bangalore are secured against the assets of the company and the same are under the possession of the KSIIDC, Bangalore.

1. According to the information and explanation given to us the assets of the company are under the possession of the KSIIDC, Bangalore. Since the assets are secured against the Loans with KSIIDC.

2. As explained to us, there are no stocks of Goods, stores, spare parts and materials as physically verified and certified by the management.

3. a. The Company has not taken any loans, secured or unsecured, from companies, firms, or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, or from Company under the same management within the meaning of Section 370 (IB) of the Companies Act, 1956, where the rate of interest and other terms and conditions are, in our opinion, prima facie prejudicial to the interests of the Company except that on amount of Rs. 214.83 Lacs has been taken as unsecured loans from companies in which Directors are interested and from others.

b. The company has not granted any loans, secured or unsecured, to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956, or to company under the same management within the meaning of Section 370 (1B) of the Companies Act, 1956, where the rate of interest and other terms and conditions are, in our opinion, prima facie prejudicial to the interests of the Company.

c. The company has not granted any advances in the nature of loans.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regards to purchases of stores, raw materials including components, plant and machinery, equipment and other assets and with regard to sale of goods.

5. Whether transactions that need to be entered into a register in pursuance of Section 301 of the Act have been so entered. Not applicable.

6. According to the information and explanations given to us, the Company has not accepted any deposits as define under Section 58 A of the Companies Act, 1956 and the rules framed there under during the period under review.

7. The company is having a paid-up capital exceeding Rs. 50 Lacs as at the commencement of the financial year concerned and has no Internal Audit System commensurate with its size and nature of business.

8. According to the information explanation given to us maintenance of cost records has not been prescribed by the Central Government under section 209 (1) of the Companies Act, 1956, for any of activities of the Company.

9. a. According to the information and explanations given to us Provisions of the Provident Fund Act and Employees State Insurance Act are not applicable to the company.

b. According to the information and explanations given to us, and the records of the company examined by us there are no undisputed amounts payable in respect of Wealth-Tax, sales tax, customs duty and excise duty which have remained outstanding, as at 31st March, 2009, for a period of more than six months from the date they became payable except the amounts of TDS of Rs. 25,100/- and Income Tax of Rs. 6,37,598/-.

10. The company has been registered for a period of not less than 5 years and its accumulated losses at the end of the financial year is more than 50% of the net worth. The company is a Sick Industrial Company within the meaning of clause (o) of sub- section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and the same has not been reported to the BOARD FOR INDUSTRIAL RECONSTRUCTION by the Directors of the Company.

11. Whether the company has defaulted in repayment of dues to a financial institution Or bank or debenture holders If yes, the period and amount of default to be reported. Not applicable.

12. Whether adequate documents and records are maintained in cases where the company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities; If not, the deficiencies to be pointed out. Not applicable.

13. Whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions where of are prejudicial to the interest of the company. Not applicable.

14. Whether term loans were applied for the purpose for which the loans were obtained. Not applicable.

15. Whether the funds raised on short-term basis have been used for long term investment and vice versa; If yes, the nature and amount is to be indicated. Not applicable.

16. Whether the company has made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act and if so whether the price at which shares have been issued is prejudicial to the interest of the company. Not applicable.

17. Whether securities have been created in respect of debentures issued. Not applicable.

18. Whether the management has disclosed on the end use of money raised by public issues and the same has been verified. Not applicable.

19. Whether any fraud on or by the company has been noticed or reported during the year; It yes, the nature and the amount involved is to be indicated. Not applicable.

Date: 05.09.2009 V.RAMACHANDRA RAO

Place: Hyderabad CHARTERED ACCOUNTANT

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Mar 31, 2008

1. We have audited the attached Balance Sheet of "M/s Asian Flora Limited". As at 31st March, 2008 and also the Profit and Loss Account for the year ended on that date annexed thereto. These financial statements are the responsibility of the company's Management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit included examining, on a test basis, evidence supporting the amounts and disclosures in financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the companies (Auditor's Report) Order 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the order.

4. Further to our comments in Annexure referred to above, we report that:

a. We have obtained only the available information and explanations to the extent furnished and as is made available to us. In view of the closure of the unit since long and non availability of staff; the availability of information and explanation have got effected to a certain extent and subject to these limitations we could elicit the information to the best of our knowledge and which were necessary for the purpose of our audit.

b. In our opinion, proper books of accounts as required by Law "Prima-facie" appear to have been kept; by the company; so far as appears from our examination of those books. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit.

c. In our opinion proper books of accounts as required by law have been kept by the company so far as appears from our examination of the books.

d. The Balance Sheet and the Profit & Loss account dealt with by the report are in agreement with the books of account.

e. On the basis of written representation received from the Directors and taken on record by the Board of Directors, we report that none of the Director is disqualified as on March 31st, 2008 from being appointed as a Director under clause (g) of sub-section (1) of section 274 of the companies Act, 1956.

f. The company is not having manufacturing activity since 2001. Hence this matter shows the impact / effect on the "Going Concern Concept".

g. In view of examination of books of accounts the company has not provided the interest on secured loans. And thus not followed the "accrual concepts".

h. The loan outstanding to KSIIDC, Bangalore, NHB, Bangalore are secured against the assets of the company and the same are under the possession of the KSIIDC, Bangalore.

1. According to the information and explanation given to us the assets of the company are under the possession of the KSIIDC, Bangalore. Since the assets are secured against the Loans with KSIIDC.

2. As explained to us, there are no stocks of Goods, stores, spare parts and materials as physically verified and certified by the management.

3. a. The Company has not taken any loans, secured or unsecured, from companies, firms, or other parties listed in the register maintained under Section 301 of the Companies Act, 1956, or from Company under the same management within the meaning of Section 370 (1B) of the Companies Act, 1956, where the rate of interest and other terms and conditions are, in our opinion, prima facie prejudicial to the interests of the Company except that on amount of Rs. 214.83 Lacs has been taken as unsecured loans from companies in which Directors are interested and from others.

b. The company has not granted any loans, secured or unsecured, to companies, firms, or other parties listed in the register maintained under section 301 of the Companies Act, 1956, or to company under the same management within the meaning of Section 370 (1B) of the Companies Act, 1956, where the rate of interest and other terms and conditions are, in our opinion, prima facie prejudicial to the interests of the Company.

c. The company has not granted any advances in the nature of loans.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regards to purchases of stores, raw materials including components, plant and machinery, equipment and other assets and with regard to sale of goods.

5. Whether transactions that need to be entered into a register in pursuance of Section 301 of the Act have been so entered. Not applicable.

6. According to the information and explanations given to us, the Company has not accepted any deposits as define under Section 58 A of the Companies Act, 1956 and the rules framed there under during the period under review.

7. The company is having a paid-up capital exceeding Rs. 50 lacs as at the commencement of the financial year concerned and has no Internal Audit System commensurate with its size and nature of business.

8. According to the information explanation given to us maintenance of cost records has not been prescribed by the Central Government under section 209 (1) of the Companies Act, 1956, for any of activities of the Company.

9. a. According to the information and explanations given to us Provisions of the Provident Fund Act and Employees State Insurance Act are not applicable to the company.

b. According to the information and explanations given to us, and the records of the company examined by us there are no undisputed amounts payable in respect of Wealth-Tax, sales tax, customs duty and excise duty which have remained outstanding, as at 31st March, 2008, for a period of more than six months from the date they became payable except the amounts of TDS of Rs. 25,100/- and Income Tax of Rs. 6,37,598/-.

10. The company has been registered for a period of not less than 5 years and its accumulated losses at the end of the financial year is more than 50% of the net worth.

The company is a Sick Industrial Company within the meaning of clause (o) Of sub- section (1) of section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and the same has not been reported to the BOARD FOR INDUSTRIAL RECONSTRUCTION by the Directors of the Company.

11. Whether the company has defaulted in repayment of dues to a financial institution or bank or debenture holders If yes, the period and amount of default to be reported. Not applicable.

12. Whether adequate documents and records are maintained in cases where the company has granted loans and advances on the basis of security by way of pledge debentures and other securities; If not, the deficiencies to be pointed out. Not applicable.

13. Whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions where off are prejudicial to the interest of the company. Not applicable.

14. Whether term loans were applied for the purpose for which the loans were obtained. Not applicable.

15. Whether the funds raised on short-term basis have been used for long term investment and vice versa; If yes, the nature and amount is to be indicated. Not applicable.

16. Whether the company has made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act and if so whether the price at which shares have been issued is prejudicial to the interest of the company. Not applicable.

17. Whether securities have been created in respect of debentures issued. Not applicable.

18. Whether the management has disclosed on the end use of money raised by public issues and the same has been verified. Not applicable.

19. Whether any fraud on or by the company has been noticed or reported during the year; If yes, the nature and the amount involved is to be indicated. Not applicable.

Date: 05.09.2008 V.RAMACHANDRA RAO

Place: Hyderabad CHARTERED ACCOUNTANT